PolygamousRanchKid writes: The new CEO's prescription for fixing Hewlett-Packard's ailing businesses, such as personal computers and information-technology services, includes boosting research spending and limiting the size of acquisitions. The idea is to conserve cash and spur homegrown innovation, something the company neglected over the past decade.

Whitman told Wall Street analysts she plans to eschew large acquisitions next year, rebuild the company's balance sheet and reduce the amount of "drama" at the company after Apotheker's ouster. "HP is getting back to business fundamentals in 2012," she said during a conference call with analysts. "No more surprises."

“We are still underinvested in almost every major segment," she said. To help spur innovation, HP Labs director Prith Banerjee now reports directly to the CEO. "We've created confusion among many of our shareholders about what kind of company HP is," Whitman told analysts. "We"ll be doing the hard work that will position us for consistent, profitable growth in 2013 and beyond."Link to Original Source